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However, the Abu Salem gang appears to be taking the space vacated by Shakeel, he added.
"The arrest of the incarcerated film financer Bharat Shah has succeeded in sending a strong signal to those who had been so far nurturing links with Shakeel," Singh told a group of reporters in Bombay on Friday.
The sustained pressure by the police on the Chhota Shakeel gang and increased vigilance around film personalities, who were involved with the underworld, had forced the don to loosen his grip over Bollywood.
"The number of extortion threats have drastically dropped in the past one and half years. There have been hardly any complaints of extortion," he said.
"However, the police has noticed an increase in the involvement of the Abu Salem gang in Bollywood."
"The murder of Gulshan Kumar and Manisha Koirala's secretary Ajit Dewani and the attacks on film maker Rajiv Rai and plans to attack actor Aamir Khan were all the work of the Abu Salem gang," Singh said.
Issuing a strict warning to those who were still keen on maintaining links with the underworld, Singh said, "There are some foolish persons who have not learnt a lesson from the Bharat Shah case and imagine that they will sneak through the police without being noticed. However, the police is observing them closely and action will be taken once we gather evidence against them," Singh said.
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